For those whose Hambleton home is held on a long lease, our message is clear – if nothing is done, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension.
Leasehold premises in Hambleton with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Hambleton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hambleton valuers.
Last October Jason, came perilously close to the 80-year threshold with the lease on his leasehold apartment in Hambleton. In buying his flat 19 years ago, the unexpired term was of minimal interest. Fortunately, he realised he would imminently be paying an inflated amount for a lease extension. Jason arranged for a lease extension just under the wire last March. Jason and the landlord eventually agreed on sum of £5,500 . If the lease had dipped below 80 years, the premium would have become more exhorbitant by at least £1,075.
Ms Grace Gómez bought a garden flat in Hambleton in May 2001. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar residencies in Hambleton with an extended lease were valued around £256,600. The mid-range amount of ground rent was £60 invoiced annually. The lease ended in 2077. Having 52 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 plus legals.
Dr C Mason completed a ground floor apartment in Hambleton in March 1996. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar premises in Hambleton with an extended lease were valued around £218,000. The mid-range amount of ground rent was £45 billed annually. The lease ran out in 2088. Given that there were 63 years unexpired we approximated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of costs.